We present a method for the production of liquid hyperpolarized Xe-129 that employs spin-exchange optical pumping in the gas phase and subsequent phase exchange with a column of xenon liquid. A convection loop inside the sealed glass cell allows efficient transfer of magnetization between the gas and liquid phases. By condensing to liquid a large fraction of the sample, this scheme permits the polarization of many more Xe-129 atoms in a given sealed-cell volume than would otherwise be possible. We have thus far produced a steady-state polarization of 8% in 0.1 mL of liquid with a characteristic rise time of approximate to15 min. (C) 2004 American Institute of Physics.